Making Tax Digital for Landlords

If you earn rental income from property in the UK, Making Tax Digital (MTD) for Income Tax will affect how you report that income to HMRC. From April 2026, landlords with qualifying income will need to submit quarterly digital updates using MTD-compatible software. Here's everything you need to know.

Does MTD Apply to Landlords?

Yes. Making Tax Digital for Income Tax applies to landlords with property income (or combined self-employment and property income) above the qualifying thresholds. This includes income from residential lettings, commercial property, holiday lets, and furnished lettings.

The thresholds are:

• April 2026 - landlords with annual self-employment or property income over £50,000.
• April 2027 - the threshold drops to £30,000.
• April 2028 - the threshold drops further to £20,000.

Note that these thresholds are based on gross income (turnover), not profit. So if your total rental income is over £50,000 before expenses, you'll need to comply from April 2026 even if your profit is lower.

What Changes for Landlords Under MTD?

Instead of submitting a single Self Assessment tax return at the end of the year, landlords will need to:

1. Keep digital records of all rental income and allowable expenses throughout the year.
2. Submit quarterly updates to HMRC - cumulative summaries of your income and expenses from 6 April to the end of each quarter.
3. Submit a Final Declaration by 31 January following the end of the tax year. This replaces the Self Assessment return and confirms the figures are complete.

Common Landlord Expenses Under MTD

When submitting quarterly updates, you'll need to report your allowable expenses. For landlords, these typically include:

• Mortgage interest (subject to restrictions)
• Insurance premiums
• Repairs and maintenance
• Letting agent fees
• Accountancy fees
• Ground rent and service charges
• Council tax (if paid by you)
• Utility bills (if paid by you)
• Travel costs for property management

If you already track these in a spreadsheet, you're well placed to use MTD bridging software rather than switching to full accounting software.

MTD for Landlords with Multiple Properties

If you own multiple rental properties, your income from all UK properties is combined into a single "UK property business" for MTD purposes. You submit one quarterly update covering all your properties, not a separate update for each one. Many landlords with multiple properties already use a spreadsheet with tabs for each property - this approach works perfectly with MTD bridging software.

Do Landlords Need Accounting Software?

No. HMRC requires "compatible software" but this doesn't have to be full accounting software. MTD bridging software is an officially supported category that lets you keep using your spreadsheet. This is especially suited to landlords who have a straightforward portfolio and already track rental income and expenses in Excel or Google Sheets.

How qwartly Helps Landlords

qwartly is MTD bridging software designed for landlords who want to keep their spreadsheets. Simply upload your rental income and expenses spreadsheet each quarter, map the columns to HMRC's categories (you only do this once), and submit. qwartly handles the formatting and submits directly to HMRC's Making Tax Digital API.

At £49 per year, qwartly is significantly cheaper than monthly accounting software subscriptions. There are no per-property charges, no per-submission fees, and no hidden costs.

How to Prepare for MTD as a Landlord

• Check your income - does your total rental income (before expenses) exceed £50,000? If so, you'll need to comply from April 2026.
• Organise your spreadsheet - ensure you have clear columns for dates, income type, income amounts, expense categories, and expense amounts.
• Choose MTD bridging software - if you want to keep your spreadsheet, bridging software is the simplest option.
• Register for MTD with HMRC - you'll need to opt in through your Government Gateway account before your first quarterly submission.

Related Guides

• What is MTD bridging software? - learn how bridging software lets you keep your spreadsheet and submit to HMRC.
• MTD for sole traders - Making Tax Digital requirements for self-employed individuals.
• MTD bridging software pricing - see how qwartly compares to other MTD-compatible software.